Systems Development Charges (SDC's)

SDC's are assessed on new home construction to pay for the demand they add to the utility and service systems. These charges can amount to $6000 to $10,000 per unit and therefore affect a community’s ability to create affordable housing.

Action Options :

Jurisdictions can consider deferments or waivers of SDC's for affordable housing.

In Friday Harbor, Washington, water/sewer connection fees (currently $17,000/unit) are deferred for 15 years –at which time they pay the rate at the time of construction even though the rate will have gone up. (The Community Land Trust buys a 0% coupon to pay off the fee in the future, saving 50%). If home becomes market rate at any time then the fee is due immediately.

The City of Bend offers different levels of waivers depending on what percentage of affordable housing (specifically defined) is being provided in any development.

Jurisdictions could offer loans to cover the cost of SDC’s for affordable housing. Bend does.

Accessory Dwelling Unit fees can be considered as different from a dwelling unit relative to SDC's.

Eugene's EWEB has a program for local utility SDC subsidy.

Waivers could be made on ADU's with energy upgrades.

An ADU’s deferral for affordable housing could be for 5 years and then forgiven.